Beta Industries Manufactures Floppy Disks That Consumers Perceive as Identical

question 112

Essay

Beta Industries manufactures floppy disks that consumers perceive as identical to those produced by numerous other manufacturers.Recently,Beta hired an econometrician to estimate its cost function for producing boxes of one dozen floppy disks.The estimated cost function is C = 20 + 2Q².
a.What are the firm's fixed costs?
b.What is the firm's marginal cost?
Now suppose other firms in the market sell the product at a price of $10.
c.How much should this firm charge for the product?
d.What is the optimal level of output to maximize profits?
e.How much profit will be earned?
f.In the long run,should this firm continue to operate or shut down?
Why?

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Definitions:

Ethical

Pertaining to or dealing with morals or the principles of morality; pertaining to right and wrong in conduct.

Socially Responsible

Committed to acting in ways that benefit society and the environment, beyond the minimum legal requirements.

Customer Goodwill

The favor and loyalty a business acquires from customers through positive experiences and satisfaction.

Stakeholder Orientation

A business approach that prioritizes the interests and well-being of all relevant stakeholders, including customers, employees, and the community.